Hope for Homeowners lender, Lend America, is under investigation by the DOJ:
As the Obama administration attempts to turn around the beleaguered Hope for Homeowners program to fight foreclosures, it faces a nettlesome new headache. The primary lender involved is under investigation by the Department of Justice.
Senior federal housing officials say that of 51 loans made under the program, 50 were made by Melville, N.Y.-based Lend America, and those 50 loans are being held up pending ongoing federal investigations. The officials, who insisted on anonymity because they are not authorized to speak on the matter, declined to offer specifics except to say anything from inadequate documentation to unethical practices could be the focus of the queries.
Get that? Out of 400,000 homeowners they were supposed to help, only 51 loans have been made and those, 50 are being investigated. So, in other words, only one good loan!
thanks to overly strict guidelines and weak incentives, the program foundered, producing just 51 closed loans in six months. In April, Obama unveiled an overhauled version as a key part of the $75 billion Making Home Affordable plan.
Earlier we noted this program was a sham in the post Hope Program Hopeless.